US CONSUMER : Saving Mood

Providers of consumer goods and services and retailers are definitely feeling the pinch.

In the long-run this is healthy but if we acknowledge that the primary investment savings and wealth creating vehicle for most Americans is their home and consider that the National Association of Realtors (NAR) estimates that from the peak of 2007 thru January 2009 the median home price has declined aprox.-25% and that the stock market, S&P 500 -45% since the October 2007 peak-to-date, then a lot of people have some serious bootstrap catching up to do.

Anyone who has experienced any of this wealth destruction is more inclined to rebuild wealth instead of spending hard earned cash. For those who refuse to modify spending and saving habits and use credit, it will be difficult to find.